As central banks around the world joined a global rush to raise interest rates, we share how we’re balancing the risk/return profile of the Focus List as uncertainty around the risk of recession continues to bite.
22nd Jun, 2022
As household spending begins to normalise over the next 12 months, we look at the outlook for earnings in a post-COVID world.
15th Jun, 2022
May was a tricky time to be an Australian investor with the market falling 3% over the month, underperforming the MSCI World ex Australia (-1.1%). We look at the market’s key concerns over the month and explain the changes we’ve made to the Focus List in June as a result.
8th Jun, 2022
Volatility in the markets causes investors to seek ways to mitigate that risk. Including quality or defensive stocks in a portfolio may be a good solution, with the return and volatility of quality defensives being historically superior to those of broader equities during choppy market conditions.
1st Jun, 2022
With already tight oil and gas markets getting tighter as a result of the Russia/Ukraine crisis, some lost production now looks irreversible, adding another significant tailwind to the energy outlook over the next few years.
25th May, 2022
Our outlook for the banks remains positive. As we enter a period of RBA rate hikes, margin pressure will likely ease, driving earnings growth over the medium-term. However, risks remain for Aussie banks as rates rise. We delve into the 1H22 results and outline our reasoning for an overweight to the banks.
18th May, 2022
Last week the RBA hiked rates for the first time in 12 years, raising the cash rate from an all-time low of 0.1% to 0.35%. Several more rate hikes are likely in the next 12 months. Currently, we believe that RBA rate hikes will not be a significant headwind for equities. However, a rate hike environment would likely result in prolonged volatility until the market gets more clarity about the end game.
11th May, 2022
Since December, risk aversion in equity markets has shifted as inflationary pressures and higher bond yields have placed downside pressure on equity valuations. However, over the last month defensives have started to outperform the market, from healthcare and consumer staples to utilities.
4th May, 2022
Over the last 2 years the focus list has benefited from stocks where we have identified hidden value. We find this subset of the portfolio can provide great returns that are less correlated to the rest of the market. One such stock that has taken our eye is Tabcorp (TAH).
27th Apr, 2022